Tuesday, May 05, 2009

Two stocks on China

The two stocks I want to focus on today is FXI and OCNF

FXI, a play on H-shares Chinese stocks listed in Hong Kong. The Hang Seng index has broken out past 16000 two days ago in a beautiful cup and handle chart formation. The 20dma is above the 50dma. All this on the back of strong economic data coming out of China. I am adding to my FXI holdings on pullbacks.

OCNF is a dry shipping company with a fleet of ships. This is a play on the China recovery story. Yesterday saw heavy volume over 20M shares traded on average volume under 2M. This is a $1.85 stock at the moment and extremely risky.